Also found in: Acronyms.
Total sales and other revenue for the period shown. Known as "turnover" in the U.K.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The total amount of a company's sales and other sources of income. It is important to note that revenue is distinct from earnings or profits, which takes expenses into account. Obviously, however, high total revenue is desirable for any company.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
total revenuethe aggregate revenue obtained by a FIRM from the sale of a particular quantity of output, equal to price times quantity. Under conditions of PERFECT COMPETITION, the firm faces a horizontal DEMAND CURVE at the going market price. Each extra unit of output sold (MARGINAL REVENUE) adds exactly the same amount to total revenue as previous units. Hence, total revenue is a straight upward sloping line (see Fig. 187 (a) ). Under conditions of imperfect competition (for example, MONOPOLISTIC COMPETITION), the firm faces a downward-sloping demand curve and price has to be lowered in order to sell more units. As price is lowered, each extra unit of output sold (marginal revenue) adds successively smaller amounts to total revenue than previous units. Thus, total revenue rises but at a decreasing rate, and eventually falls (see Fig. 187 ).
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005